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5. Graham, Inc. began 2017 with 25,000 common shares outstanding and issued a 20% stock dividend on August 1. The company iss

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Answer #1

Weighted average share outstanding = (25000*1.2*11)/12+(30000+6000*1/12) = 30500

Basic earning per share = (Net income-Preferred dividend)/Share outstanding

= (175600-32400)/30500

Basic earning per share = 4.70 per share

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